One of our highest priorities at Franklin Resources is our investor's returns. We've decided to structure our programs with that in mind. Our "Investor Friendly'' features greatly differentiate our attitude and project from others. First of all, we are dedicating 100% of the working interest production to our investors until 7,000 barrels of oil have been produced from each individual well (well by well basis). As a direct result, our venture partners will see an accelerated return on their initial investment as compared to the "Standard'' oil deal. Secondly, each investor will have the right of first refusal to participate in future wells on the prospect acreage. We've studied and staked out this specific area of interest for quite some time. Now that advances in technology can apply to harvest more oil than previously thought possible, this is an opportune time and location to drill. This project is also a great opportunity for the retail investor to be able to participate in an "Industry" deal. A deal where the chips are actually stacked in the investor's favor. Thirdly, this is an area and formation that our operator and geologist are highly familiar with. We expect nothing but success, however in the unlikely case that we drill a dry hole on the leasehold property, we will return half of the investor's initial funds dedicated to that particular well.
Franklin Resources has secured a strong position in the heart of the Mississippian Lime formation exploratory trend, in Kiowa County, Kansas. There are currently two production wells, that have pumped a substantial amount of oil (over 50,000 barrels of oil). One spudded in 1973 and the other in 1991, and they are both still producing to this day! These returns were achieved before present day large slick-water tracks were employed. These two wells are meeting the production requirements needed to hold the mineral right lease on 1,080 acres of land. We project that there is more than 700,000 barrels of recoverable oil under these leases. That being the case, a program employing approximately 10 vertical wells will be sufficient to
harvest this oil. The initial venture capital raised to begin th is program will be $2.3 million in order to drill and complete the first three wells. These wells will be established within close proximity of each other in order to create economies of scale in relation to much of the basic infrastructure needed for a drilling program. In addition to being close to each other, the three wells will be in close proximity to the two producing wells described earlier. With this "Infield" location, and directly "Offsetting" the three well locations to the producing wells, we have mitigated risk. We also are targeting the acreage that we believe shows the most promising oil prospects within the Conklin Ranch.
In addition to our "Pro Investor" structure, simplicity and transparency are two facets that our investors will
enjoy. Our company was spawned from investor discontent with other industry offerings. We have seen greed and corruption jade investors who have otherwise born witness to an industry that can reap huge profits. We're extending an "Industry'' style of venture structure to non-industry investors. If you approve of
our stout program, and decide to participate in our drilling operations, we will put your investment first. Enclosed are the plans that we intend to execute in order to begin the start of a long and fruitful investor relationship.
We intend to streamline Franklin Resources' operations by outsourcing many of the key roles within the drilling, completion, and production process to industry experts familiar with the Mississippian Lime, while running the company with a handful of employees. The continuing decline in computing power costs is revolutionizing business, lowering barriers to entry, and leveling the competitive playing field between big and small companies, thus allowing extremely talented people to freelance as never before. Consolidation of needed resources continues within the oil and gas exploration industry allowing smaller companies to streamline their asset allocation and downsize staffing. By doing more with less, Franklin Resources has increased its exposure to the pool of talented people within the industry, making oil prospects available that do not fit within the strategy of many larger companies. We focus on the most important links within the value chain; the funding and drilling of wells and the careful management of venture funds and assets. To the highest extent possible, we outsource many of the professional services that require on the ground knowledge.